Common Myths About Renters Insurance

Posted in

February 24th, 2009

Renters insurance is a relatively inexpensive and easy way to make sure your belongings remain safe. And yet, millions of renters do not purchase this type of insurance, or even see the point of considering it. Why is that? In most cases, renters overlook the option of purchasing this type of insurance because, consciously or unconsciously, they buy into one of the following myths about renters insurance:

Renters insurance is too expensive. For a lot of renters, limited budgets are a reality of life and they dont even bother to check what the cost of renters insurance might be. They assume that it is out of their reach, something that only more wealthy people can afford or need. The truth is, a basic renters insurance policy can be had for relatively little. Since the policy only covers your belongings and not the building, the premiums for renters insurance are often extremely low.

I dont need renters insurance – my landlord has the property insured. This is probably one of the most dangerous myths in that it has an element of truth. Yes, the landlord has an insurance policy, but the landlords policy only extends to the wall that is, it protects the building itself from fire, explosion, water damage and so on. Everything in your apartment is void from coverage.

I dont have a lot of valuables – its not worth buying insurance. If take a look around your rented apartment and see everything you own at a glance, you may not think its worth much. But would you be able to replace all your possessions if they were destroyed? The cost of these items is suddenly worth more if you had to replace them.